Lucent Technologies Case

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LUCENT TECHNOLOGIES CASE ACC/230 January 7, 2011 Eddie Mattison LUCENT TECHNOLOGIES CASE After reading the Case Review of Lucent Technologies, it’s obvious that the assets of Lucent Technologies suffered a large decline between the years of 2003 and 2004. 49.4% of their total assets in 2003 consisted of their current assets, and in 2004 the percentage of their current assets decreased to 48.5%. Lucent Technologies total current assets increased from $7,863 in 2003 to $8,231in 2004. After a very thorough analysis, it is also obvious that the inventory of Lucent Technologies increased between the years of 2003 and 2004, because in 2003 the percentage of inventory was only 4% and it rose to 4.8% in 2004. In measuring the company’s cash and cash equivalent, it was clearly seen that their entire assets decreased by 24% in 2003 and almost 20% in 2004. The total debt structure of Lucent Technologies significantly decreased between 2003 and 2004. Lucent Technologies current liability decreased from 25.6% in 2003 to 24.3% in 2004, but their debt could be thought to be more as long term because these debts rose from 23% of total liabilities to 26.4% a year later. When considering the equity section of Lucent Technologies, it was shown that they had a negative representation of their shareholder equity and total liabilities in 2003 when compared to the numbers in 2004; this makes their company look more like a deficit; although it is likely that improvements will happen and the company’s current situation can improve and become less of an issue as the years progress. After evaluating Lucent Technologies balance sheet, it’s more than likely that the creditors and investors would more than likely be concerned that even though the cash and cash equivalents are decreasing, the assets are accelerating steadily. The fact that Lucent Technologies is part of a very

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